1. Why does every company need these three financial statements?
利润表It is mainly used to describe the business activities of the enterprise
资产负债表and its investment and financing activities.
现金流量表It describes the business, investment and financing activities of the enterprise again.
On the first dimension, the cash flow statement describes whether a company can survive, which is the so-called risk perspective;
on the second dimension, the balance sheet and income statement show if the company can continue to survive, it What it will be like - how much wealth there is and how much income there is, that is the so-called income perspective.
Which statement is the favorite among bankers and investors?
What banks care most about is the cash flow statement.
Because we value the ability to repay debts
Investors value the income statement;
Because the income statement lists sustainable profits (operating profits) and unsustainable profits (non-operating income and expenses) separately, it can not only show how much money the company is making now, but also enable people who read the statement to form an understanding of the company's future profits. expected
Acquisition companies focus on balance sheets
Buying a company is equivalent to buying its shareholders' equity
Shareholders' Equity = Assets - Liabilities
Purchasing stockholders' equity means purchasing a company's assets and liabilities.
When acquiring a company, who is more "dangerous", assets or liabilities?
Liabilities
Contingent liabilities
A guarantees B, and if B runs away, A will be in debt.
off-balance sheet liabilities
Liabilities that clearly exist but are not recorded in the financial statements
How to do isotype analysis
It belongs to structural analysis.
Taking the income statement as an example
If you compare the results of the same type of analysis, you may get more information, which is trend analysis.
How to use ratios to analyze a company's profitability
How to use ratios for profitability analysis
To judge the profitability of a company, we must not only base it on effectiveness, but also on efficiency.
1. You must first turn the data into a ratio
Gross profit margin is the ratio obtained by dividing gross profit by operating income.
Net profit margin is the ratio obtained by dividing net profit by operating income.
What is the short-term solvency?
流动比率
Current assets/liabilities, the higher the ratio, the stronger the solvency.
速动比率
(Current assets-inventory)/Liabilities, current assets also need to consider the realization cycle, so the quick ratio is more reliable to measure short-term solvency.
American companies are 3-4, China 1-2
中国特色流动比率
(Current assets - inventories - short-term borrowings) / Liabilities